Syndicate Bank Falls in Mumbai as Chairman Accused of Bribery

By Anto Antony  

Syndicate Bank (SNDB), a state-run Indian lender, slumped in Mumbai trading after the Central Bureau of Investigation accused its chairman of bribery.

The CBI registered two cases against Sudhir Kumar Jain, chairman and managing director of Syndicate Bank, and 11 others for violation of the country’s laws on corruption and criminal conspiracy, the investigative agency said in a statement on Aug. 2. Shares of the Bangalore-based lender slumped 6.7 percent to 134.60 rupees at 10:30 a.m. in Mumbai.
Jain has been negotiating “for illegal gratification directly as well as through middlemen” in exchange for providing financial advantages to private companies, the CBI said in the statement.
Bhushan Steel Ltd. (BHUS) and Prakash Industries are the companies that sought favors from Jain, Kanchan Prasad, a CBI spokeswoman, said by phone today. Bhushan Steel slid as much as 8.5 percent, the biggest intraday decline since October 2013, and Prakash Industries (PKI) tumbled 20 percent, heading for the steepest drop since January 2001.

Phone calls made to Bhushan Steel, Prakash Industries and Jain’s office weren’t answered today.